Small business owners warned against not paying staff during riots

Date: 25th August 2011

Small business owners who were affected by the riots have been warned that they must pay their staff for the working time lost during the disturbances and subsequent clean-up.

What's more, businesses that are in need of major repairs or that were destroyed completely have been warned that they might not be able to make staff redundant, the Telegraph reports.

"Annoying as it may be for affected businesses, who are already struggling because of the economic climate ... they will have to continue to pay staff who have turned up willing to work until the extent of the damage is fully understood," explained Jim Lister, head of employment law at Pannone.

He told the news provider that employers are likely to ask staff to use their holidays, take the time unpaid or make it up at a later date, although he stressed that the circumstances could have a negative impact on staff morale.

His comments come after RBS and NatWest announced they will provide loans of up to £25,000 to small business customers affected by the riots.

Posted by Emily Smith